Tax Benefits
The tax benefits available to tax-paying solar PV system owners are substantial and greatly improve the return on investment.
Federal:
30% minimum business energy Investment Tax Credit (ITC) for all solar projects
Opportunities for ITC adders through Inflation Reduction Act of 2022
80% expensing of depreciable basis in first year for federal taxes for projects completed in 2023 (decreasing to 60% in 2024, 40% in 2025, 20% in 2026)
5-year accelerated depreciation via Modified Accelerated Cost-Recovery System (MACRS)
(Varies — MA listed)
State:
20-year local property tax exemption for PV systems providing primary or auxiliary power to a property.
Sales Tax exemption on Solar PV system components
Excise Tax deduction in lieu of depreciation deduction
Contact us for a more detailed description of these tax benefits. Note that 621 Energy is not an accounting firm or expert in tax matters and you should consult a tax professional.